Big News of the WeekThe Financial Accounting Standards Board voted to ease mark-to-market accounting rules. Beaten-down financial stocks like Citigroup ( C) and Bank of America ( BAC), the real winners of the new guidelines, rose Thursday. World leaders met at the G-20 summit in London and committed $1 trillion to help fight the global economic downturn, igniting a rally in world markets. There was also a lot of not-so-bad economic data, which helped move several stocks under $10. General Motors ( GM) and Ford had steep declines in March sales, but executives said that sales picked up at the end of the month. The unemployment rate rose to 8.5% in March. This number delivered no surprises, and there were no revisions for February. As for companies, AIG ( AIG) saw heavy volume this week, and Bank of America ( BAC) CEO Ken Lewis tried to spread some optimism. He said in an interview with CNBC that BofA will be thriving by 2011.
The Week AheadAlcoa ( AA) will report earnings on Tuesday. The stock received an analyst upgrade this week from Deutsche Bank. Earnings season will pick up steam in the middle of April, but before then investors could see some preannouncements. Negative news could trigger a selloff, potentially creating buying opportunities in the stocks under $10 universe. Tune in to the Real Story Podcast where Frank takes you beyond the headlines to tell you what's really going on in the market. Subscribe to the podcast today!
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